Bullish pattern appears to be forming: Crypto Index Analysis
09:13, 20 April 2020
The Crypto Index has been rising over recent days following the late-week recovery in Bitcoin and other notable altcoins.
Crypto Index analysis shows that a large bullish pattern with substantial upside potential is close to forming.
Crypto Index medium-term price trend
The Crypto Index is edging closer to the best levels of the month as traders start to turn more bullish towards cryptocurrencies.
Traders look to the Crypto Index as a key gauge of how the broader cryptocurrency is performing at any given time.
Crypto Index technical analysis over the medium term shows that a large inverted head-and-shoulders pattern may be forming.
If bulls can move price towards the current monthly high, around the 40,430 level, then the formation of the pattern will be confirmed.
According to the size of the pattern, the Crypto Index could rally towards the 47,000 level over the medium-term.
More conservative traders may await for the pattern to form and then breakout to the upside before initiating buy positions.
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Crypto Index short-term price trend
Crypto Index analysis highlights that the index has a bullish short-term trading bias while price trades above the 37,000 level.
The 15-minute time frame currently shows that a bearish head and shoulders pattern has formed. The neckline of the pattern is found at the 37,300 level.
According to the size of the pattern, the Crypto Index could decline back towards the 35,000 area area over the short-term.
If price moves above the 39,000 level then the pattern will be invalidated. A powerful rally towards the 41,000 resistance level could then follow.
Crypto Index technical summary
Crypto Index analysis shows that price could correct back towards the 35,000 level this week. However, a large bullish reversal pattern appears to be unfolding over the medium term.